Sec. 1501.261. RATES, TOLLS, AND CHARGES. After bonds are issued under this subchapter, the governing body of the municipality shall establish the rates, tolls, and charges for service provided by the municipality's waterworks system, or combined waterworks and sanitary sewer system if appropriate, in amounts sufficient to:
(1) pay the cost of operating and maintaining the system;
(2) pay when due the principal of and interest on the bonds; and
(3) establish and maintain the reserve fund and other funds prescribed by the ordinance authorizing the bonds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999.
Structure Texas Statutes
Subtitle J - Specific Authority for Municipalities to Issue Securities
Chapter 1501 - Obligations for Municipal Utilities
Section 1501.251. Applicability of Subchapter
Section 1501.252. Alternative Financing Procedure
Section 1501.253. Water Supply Project Ownership and Responsibilities
Section 1501.254. Ordinance Authorizing and Issuance of Bonds
Section 1501.255. Notice of Intention to Issue Bonds
Section 1501.256. Petition; Election
Section 1501.259. Sale of Bonds
Section 1501.260. Interim Bonds
Section 1501.261. Rates, Tolls, and Charges
Section 1501.262. Deposit and Use of Bond Proceeds